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Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia

In Malaysia, private health insurance coverage is usually limited to inpatient treatment or hospitalisation. With private health insurance, there is a possibility that individuals will use health care services more frequently or spend more on health care (known as moral hazard effects) because the...

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Main Authors: Zurina Kefeli @ Zulkefli,, Jones, Glenn
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2012
Online Access:http://journalarticle.ukm.my/6352/1/jeko_47-1.pdf
http://journalarticle.ukm.my/6352/
http://www.ukm.my/fep/jem/content/2012-2.html
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spelling my-ukm.journal.63522016-12-14T06:40:56Z http://journalarticle.ukm.my/6352/ Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia Zurina Kefeli @ Zulkefli, Jones, Glenn In Malaysia, private health insurance coverage is usually limited to inpatient treatment or hospitalisation. With private health insurance, there is a possibility that individuals will use health care services more frequently or spend more on health care (known as moral hazard effects) because they know they are protected. This study estimates the importance of factors affecting the demand for private health insurance and how it affects health care utilisation. This paper also provides an empirical test for the existence of moral hazard effects in health care utilisation. The analysis uses the second and third National Health and Morbidity Surveys (NHMS), which were conducted in 1996 and 2006. The analysis applies a bivariate probit model to estimate the demand for private insurance and its effect on the utilisation of health care. Utilisation of health care is defined as being admitted to either a public or private hospital. The results show that taking up private health insurance is lower among disadvantaged individuals, such as those with lower income, a lower level of education, those living in less developed regions and the unemployed. The findings also show that health conditions have a very strong effect on the hospitalisation decision. Furthermore, the results demonstrate that evidence of moral hazard existed in the 1996 but not in the 2006 data. From the results, policy makers can target an appropriate population for providing health subsidies if the National Health Insurance Scheme is implemented. Penerbit Universiti Kebangsaan Malaysia 2012 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6352/1/jeko_47-1.pdf Zurina Kefeli @ Zulkefli, and Jones, Glenn (2012) Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia. Jurnal Ekonomi Malaysia, 46 (2). pp. 159-175. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2012-2.html
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description In Malaysia, private health insurance coverage is usually limited to inpatient treatment or hospitalisation. With private health insurance, there is a possibility that individuals will use health care services more frequently or spend more on health care (known as moral hazard effects) because they know they are protected. This study estimates the importance of factors affecting the demand for private health insurance and how it affects health care utilisation. This paper also provides an empirical test for the existence of moral hazard effects in health care utilisation. The analysis uses the second and third National Health and Morbidity Surveys (NHMS), which were conducted in 1996 and 2006. The analysis applies a bivariate probit model to estimate the demand for private insurance and its effect on the utilisation of health care. Utilisation of health care is defined as being admitted to either a public or private hospital. The results show that taking up private health insurance is lower among disadvantaged individuals, such as those with lower income, a lower level of education, those living in less developed regions and the unemployed. The findings also show that health conditions have a very strong effect on the hospitalisation decision. Furthermore, the results demonstrate that evidence of moral hazard existed in the 1996 but not in the 2006 data. From the results, policy makers can target an appropriate population for providing health subsidies if the National Health Insurance Scheme is implemented.
format Article
author Zurina Kefeli @ Zulkefli,
Jones, Glenn
spellingShingle Zurina Kefeli @ Zulkefli,
Jones, Glenn
Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia
author_facet Zurina Kefeli @ Zulkefli,
Jones, Glenn
author_sort Zurina Kefeli @ Zulkefli,
title Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia
title_short Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia
title_full Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia
title_fullStr Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia
title_full_unstemmed Moral hazard and the impact of private health insurance on the utilisation of health care in Malaysia
title_sort moral hazard and the impact of private health insurance on the utilisation of health care in malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2012
url http://journalarticle.ukm.my/6352/1/jeko_47-1.pdf
http://journalarticle.ukm.my/6352/
http://www.ukm.my/fep/jem/content/2012-2.html
_version_ 1643736735691046912
score 13.211869

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